TaxTMI 
TaxTMI 
XYZ Co-Op Housing Society Limited has done Redevelopment Agreement with PQR (Developer). XYZ entered in – Redevelopment Agreement in July 2015, which was registered also. In Feb 2019 -Redevelopment was completed and Occupation Certificate was received. Now Developer is asking for GST for the NEW CARPET AREA @ CONSTRUCUTION COST @ 8% GST. Is the developer right in asking for GST?
GST on re - development
09 May 2019 
3 Replies 
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GST applicability on redevelopment: liability hinges on completion certificate timing, payment milestones, and contract terms.
Whether GST is payable on carpet area under a redevelopment agreement turns on completion timing and contract terms: issuance of an Occupation Certificate is argued to mark service completion and end further GST liability, while GST is also said to be chargeable on milestone payments made during the GST regime before such certificate; examination of the redevelopment agreement's clauses is necessary to resolve the developer's claim. (AI Summary)
Whether GST is payable on carpet area under a redevelopment agreement turns on completion timing and contract terms: issuance of an Occupation Certificate is argued to mark service completion and end further GST liability, while GST is also said to be chargeable on milestone payments made during the GST regime before such certificate; examination of the redevelopment agreement's clauses is necessary to resolve the developer's claim. (AI Summary)